03/05/2018
QSC benefits from high cloud growth and posts consolidated net income of € 5.1 million for 2017
- Preliminary figures for 2017: with revenues of € 357.9 million, EBITDA rises to € 38.3 million
- Cloud as key growth driver: revenues here surge 54% to € 27.8 million
- Free cash flow up 50% to € 12.6 million
- Proposed dividend of 3 cents per share
Cologne, 5 March 2018. The cloud and ICT service provider QSC can report consolidated net income of € 5.1 million for 2017 – thus regaining positive territory for the first time in four years. Other key earnings figures also rose, with EBITDA improving by € 1.2 million to € 38.3 million. Due to significantly lower depreciation and amortisation, EBIT even rose by € 20.2 million to € 7.1 million. This substantial improvement in the Company’s earnings and financial strength is underlined by the 50 percent increase in its free cash flow to € 12.6 million. QSC’s organisational restructuring and strategic alignment as digitiser to the German SME sector are visibly taking effect. The Company therefore plans to distribute a dividend of 3 cents per share once again.
The progress made in 2017 is documented in particular by the 54% growth in Cloud revenues to € 27.8 million. In this, its newest segment, QSC also generated its first positive full-year earnings contribution. Other business fields developed largely as planned. Revenues in the TC business with corporate customers were slightly up while Consulting revenues fell slightly short of the previous year’s figure. As expected, the Outsourcing business and the TC business with resellers reported lower revenues. Stricter regulation alone led to an earnings-neutral reduction in revenues by around € 15 million. Overall, QSC generated revenues of € 357.9 million in 2017, as against € 386.0 million in the previous year.
Comments QSC’s CEO Jürgen Hermann: “Our business performance in 2017 was consistent with our expectations. After three difficult years, QSC is now operating profitably once again and the Cloud business is noticeably gaining momentum.” Other business fields, such as the TC business with corporate customers, have also shown positive signs. Adds Hermann: “With the verticalisation of our organisation and planned spin-off of the TC business, we are now increasing our effectiveness, particularly in our sales activities. This will produce new growth opportunities.”
2018 outlook: QSC budgets free cash flow of more than € 10 million
In the current financial year, QSC expects to generate revenues of between € 345 million and € 355 million, EBITDA of between € 35 million and € 40 million and a free cash flow figure of more than € 10 million. This forecast accounts for further substantial revenue growth in the Cloud segment and growth in the two forward-looking business fields of Consulting and TC with corporate customers. These developments will be opposed by a further contraction in the TC business with resellers, mainly due to market factors, as well as in the traditional Outsourcing business.
| € million | 2017 | 2016 |
|---|---|---|
| Revenues | 357.9 | 386.0 |
| Cloud revenues | 27.8 | 18.1 |
| Consulting revenues | 39.4 | 40.3 |
| Outsourcing revenues | 102.0 | 117.4 |
| Telecommunications revenues | 188.7 | 210.2 |
| – of which with resellers | 96.7 | 118.4 |
| – of which with corporate costomers | 92.0 | 91.8 |
| EBITDA | 38.3 | 37.1 |
| EBIT | 7.1 | -13.1 |
| Consolidated net income | 5.1 | -25.1 |
| Free cash flow | 12.6 | 8.4 |
| Capital expenditure | 19.3 | 28.4 |
| Number of employees at 31 December | 1,342 | 1,360 |
Notes:
QSC will publish its 2017 Annual Report on 29 March 2018. This Corporate News includes forward-looking statements. These are based on current expectations and forecasts as to future events made by the management of QSC AG. Due to risks or erroneous assumptions, actual results may deviate substantially from these forward-looking statements.
Contact for enquiries:
QSC AG
Arne Thull
Head of Investor Relations
T +49 221 669-8724
F +49 221 669-8009
invest@qsc.de
www.qsc.de
